Followed the instructions in this forum and followed a slightly different path:
1. updated environment.rb to rails 2.1.0
2. ran "rake db:migrate" and it told me to rails was out of date and to run "rake rails:update"
3. ran "rake rails:update"
4. ran "rake db:migrate"
5. script/server and things started
6. added a route for the null route
App doesn't run yet- seems to be an error between gems and mongrel. I'll try a bit more to see where this gets to, and freeze to the books version if problems persist.
I'd love packaged final app with instructions. I don't need the per-chapter versions as I'm using the book more as a reference.
I'm trying with Ch9 at the moment.